Crypto Assets Spreading Across Multiple Blockchains: A Risky Transfer Situation

When sending cryptocurrency, choosing the wrong network can result in permanent loss of funds. According to an analysis by CryptoTicker, 51 out of the 100 largest crypto assets by market capitalization exist on two or more blockchains simultaneously.

The issue arises from the fact that a withdrawal consists of two entries: the destination address and the network chosen by the exchange. The exchange checks only the form of the address, not where it belongs.

For example, an Ethereum address starting with 0x is valid on multiple chains, including Ethereum, BNB Smart Chain, Arbitrum, Base, Polygon, and others. If a user enters this address but chooses the wrong network, the transfer will go through cleanly, but the balance will be lost forever.

Chainlink leads the field in terms of the number of contract entries on different chains, with 87 different chains hosting its contracts. Other top assets include USDC, Tether, and Ethereum.